DSSRC Administrative Closure #297
The Direct Selling Self-Regulatory Council (DSSRC) contacted a direct selling company (“Company”) that sells personal care and cleaning products regarding claims disseminated on social media by Company salesforce members. The claims at issue consisted of nine earnings claims that were disseminated on Facebook and Loom.
DSSRC contacted the Company and expressed concern that the posts included unsupported representations that typical Company salesforce member can earn “a few extra hundred $ a month,” “an extra $800 a month,” “full-time income”
and “as much as you want” through participation in the Company’s business opportunity.
The Company promptly addressed the claims identified in DSSRC’s Notice of Inquiry, resulting in the removal of five of the posts and modification of one post (i.e., that referenced “extra income”) to include a clear and conspicuous disclosure of the amount of annual income that can generally be generally expected by a Company salesforce member. With respect to the three remaining posts, the Company indicated to DSSRC that posts were disseminated by individuals located in New Zealand and that the Company has no control over the sales activities of these individuals nor derives any financial benefit from their sales activities. Notwithstanding, the Company confirmed to DSSRC that it had contacted the company with whom these individuals were affiliated, informed them of the unsupported earnings representations and requested that they be removed. DSSRC concluded that the Company’s actions were necessary and appropriate
DSSRC determined that the Company demonstrated that it made a bona fide, good faith attempt to address DSSRC’s concerns by removing and/or modifying six of the social media posts at issue and taking action to have the three remining posts taken down. Accordingly, this inquiry was administratively closed.
(Administrative Closure #297, closed on 11/22/23)
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